Investing for Post-Secondary Education

Educational Withdrawals

This is the best part. A beneficiary is attending a post-secondary institution and it’s time for your clients to direct their savings towards tuition, text books, rent, phone bills and all those bus tickets that will keep their kids close to home.

Here’s what we need:

  1. A completed RESP Withdrawal Form
  2. Proof of enrollment

What qualifies as proof of enrollment?

The document you use as proof of current enrollment must include the following:

  • Beneficiary Name
  • Student Number
  • Name of the Educational Institution
  • Term or Semester

A Letter of Acceptance is NOT proof of enrollment.

As long as it has the elements noted above, we’ll accept:

  • A letter from the Registrar’s Office confirming enrollment
  • A tuition invoice (not past due)
  • A student timetable

We cannot accept:

  • A Letter of Acceptance or Offer of Admission (conditional or unconditional)
  • Student cards
  • Cashier receipts
  • Bank or credit card statements


1. Educational Assistance Payment (EAP) – a withdrawal of grant and growth

This is the type of withdrawal we recommend RESP investors make first. EAPs consist of the plan’s grant and growth. The capital gains tax is attributed to the beneficiary, who is typically in a lower tax bracket than the subscriber.

The amount of EAP your clients can withdraw depends on whether the beneficiary is a full-time or part-time student.

EAP withdrawal limits

Student DesignationFirst 13 weeks
(from the program’s start date)
After first 13 weeksLifetime Grant
Withdrawal Limit
Full-Time Student $5,000* In 2017, the annual EAP limit was $23,113. Check with CRA for the latest information. $7,200
Part-Time Student $2,500 $2,500 per rolling 13 week period $7,200

*A student who takes a break from their studies for more than 12 months is considered a new student upon their return. In that case, the first 13 week rule applies.

2. Post-Secondary Education (PSE) – a withdrawal of contributions

There’s no limit on PSE withdrawals—and there’s no tax implication for subscribers or students. Your clients don’t have to use PSE withdrawals for tuition. As long as they can produce proof of enrollment, they can spend this money on any of the costs associated with post-secondary education.

More information

  • EAP Withdrawals – more information about Educational Assistance Payments and requirements
  • EAP Calculations – find out how the government calculates the composition of each withdrawal


Investor Flyer – Client-friendly sales piece that explains the benefits of opening a Franklin Templeton RESP